The joint venture is scheduled to begin construction of the initial phase of the wafer fabrication plant in the second half of this year, pending regulatory approvals. Initial products are planned to be available to customers by 2027.
When the investment was still in the pipeline, Vanguard Chairman Leuh Fang told reporters that the expansion would be focused on the increasing demand for all types of power management and power supply chips.
NXP is a key customer of both Vanguard and TSMC. NXP also invested in TSMC's first chip plant in Europe, in the German city of Dresden, along with Bosch and Infineon.
"NXP continues to take proactive actions to ensure it has a manufacturing base which provides competitive cost, supply control and geographic resilience to support our long-term growth objectives," said NXP's president and CEO, Kurt Sievers.
